Cybersecurity in ESG Compliance
If you are developing ESG (Environmental, Social, and Governance) software, it must meet the strictest cybersecurity requirements!
As regulatory frameworks in the EU become more stringent, organizations must align their ESG strategies with robust cybersecurity measures to mitigate risks and enhance resilience. This article explores how companies can effectively implement ESG principles while strengthening cybersecurity, ensuring long-term sustainability and regulatory compliance.
The EU Cybersecurity Certification (EUCC) is essential for ESG software providers, as it ensures that their products comply with recognized cybersecurity standards, thereby safeguarding data integrity and system security. In light of increasing regulatory requirements for ESG disclosures and the growing risk of cyber threats, EUCC certification enhances the credibility and reliability of ESG software solutions.
Moreover, it provides assurance to regulators, clients, and stakeholders that the software meets high-level cybersecurity requirements, reducing potential risks associated with data breaches, non-compliance, or operational disruptions.
Beyond its technical benefits, such certification also carries significant prestige and provides a competitive advantage. Companies that obtain the certification gain an edge over their competitors and may appear more attractive to business partners and investors. At the same time, it significantly reduces risk factors through an annual evaluation process that focuses on sustainability and reinforces ESG objectives by identifying and correcting risks.
Additionally, the certification plays an important role in strengthening business and supplier relationships. Compliance with security standards fosters stable, long-term partnerships. The Common Criteria certification ensures that data flows only between authorized parties. It is also crucial in supporting innovation and ensuring compliance with GDPR and other regulatory requirements—both of which are essential for minimizing legal risks.
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Hungary Mandates EUCC Certification for ESG Software
ESG software must also be officially registered. In Hungary, the certification of ESG software is currently carried out by the Supervisory Authority for Regulated Activities (SZTFH).
The cybersecurity certification of ESG software is carried out using the European cybersecurity certification scheme based on Common Criteria (EUCC), in accordance with Commission Implementing Regulation (EU) 2024/482. The presence of the certification confirms that the ESG software meets at least the AVA_VAN.2 level of compliance.This certification corresponds to the EAL2 assurance level within the Common Criteria framework and focuses on vulnerability assessment capabilities. (Az ESG szoftverek kiberbiztonsági tanúsítása az (EU) 2024/482 bizottsági végrehajtási rendelet szerinti közös kritériumokon alapuló európai kiberbiztonsági tanúsítási rendszer (EUCC) alkalmazásával történik. A tanúsítvány megléte az ESG szoftver legalább AVA_VAN.2 szintű megfelelését igazolja.)
What Do EAL2 and AVA_VAN.2 Mean?
Each level represents stricter security requirements:
EAL1
Functionally tested, providing simple security assurance through analysis of security functions
EAL2
Structurally tested, examines source code and system architecture to verify security implementation
EAL3
Methodically tested and checked, adds significant security integration into evaluation
EAL4
Methodically designed, tested, and reviewed with substantial security measures
EAL5
Semiformally designed and tested with formal, repeatable security development
EAL6
Semiformally verified design and tested with increased focus on formal verification
EAL7
Formally verified design and tested, represents the highest level of assurance
These levels match the EU Cybersecurity Act's defined assurance categories. EAL1 through EAL3 fall under “Substantial”, while EAL4 through EAL7 belong to “High” assurance.
ESG software handles sensitive environmental, social, and governance data vital for investment decisions, making this enhanced scrutiny essential. Several vital factors have made EAL2 the standard for ESG software applications. This level requires more thorough independent testing and vulnerability analysis than EAL1, which uncovers security issues that might not be obvious at first. At EAL2, the evaluation requires examining the source code and system architecture to confirm the implementation of security functions.
The AVA_VAN.2 vulnerability assessment requirement serves as the life-blood of EAL2 or EAL 3 certification. Software that passes AVA_VAN.2 assessment shows minimum resistance against attackers with basic attack potential. The substantial assurance level, covering EAL1 to EAL3, identifies and reduces fundamental security vulnerabilities through direct examination and testing. This ensures the software can handle low-skill attacks and basic threat scenarios.
ESG software vendors who want EU cybersecurity certification must overcome several procedural hurdles as they direct their way through the EUCC framework. The certification trip starts when vendors submit a detailed Security Target (ST) description that outlines their product's security attributes and lines up with relevant assessment components. This original step marks the beginning of a complex process that needs substantial resources and technical expertise.
How Can CCLab Help?
CCLab has many years of experience obtaining certifications for the most important cybersecurity standards. Our expert team will guide you through every step of the certification process:
Certification Documentation – Assisting in preparing documentation to meet EUCC requirements.
Testing & Validation – Ensuring your product successfully passes all required security tests.
Fast and Seamless Process – Our experienced team accelerates certification so you can reach the market faster
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FAQ
What is the EUCC?
The European Union Cybersecurity Certification Scheme (EUCC) is a Common Criteria-based certification system drafted by the European Union Agency for Cybersecurity (ENISA). It aims to harmonize the evaluation and certification of Information and Communication Technology (ICT) products across Europe, ensuring they meet consistent cybersecurity standards. The European Commission adopted the implementing regulation, named EUCC, in 2024 ((EU) 2024/482) within the framework of the EU Cybersecurity Act (CSA).
How does the EUCC differ from previous certification schemes?
The EUCC is designed to replace the previous SOG-IS Mutual Recognition Agreement (MRA) and introduces a unified framework under the EU Cybersecurity Act (CSA). This new scheme standardizes the certification process across EU member states, reducing complexity and fostering mutual recognition of certified products.
What are the benefits of obtaining EUCC certification for my product?
Achieving EUCC certification demonstrates that your ICT product complies with rigorous cybersecurity standards, enhancing its credibility and marketability within the European market. It also facilitates easier access to multiple EU countries by eliminating the need for multiple national certifications.
What is the process for obtaining EUCC certification?
The EUCC certification process involves several key steps:
- Application: Apply to a designated certification body accredited under the EUCC scheme.
- Preparation: Hire consultants, review documentation through training, and perform an internal audit to ensure readiness for evaluation.
- Evaluation: An independent assessment of your product's security features and documentation is conducted.
- Certification: Upon successful evaluation, a certificate is issued, confirming compliance with EUCC standards.
Engaging with experienced certification bodies and IT Security Evaluation Facilities (ITSEFs) can streamline this process.
How can CCLab assist in achieving EUCC certification?
CCLab offers professional assistance, i.e. consultancy services to guide you through the EUCC certification process. Our team provides support in preparing necessary documentation, conducting security evaluations, and ensuring your product meets all required standards, thereby facilitating a smoother and more efficient certification journey.
For more detailed information and resources on EUCC certification, contact our team directly.
What are the key dates for the EUCC implementation and transition?
The EUCC scheme became fully effective on February 27th, 2025, replacing the former national Common Criteria (CC) certification schemes. Applications under the old national schemes were accepted until the end of January 2025, and any ongoing projects must be finalized by 27th February 2026.
CC certificates issued during the transition period will remain valid for five years, even after the EUCC took effect. This ensures continuity and recognition while organizations adapt to the new framework.
The EUCC not only harmonizes certification across the EU but also provides ICT suppliers with stronger market credibility, free movement of certified products across member states, and an expanded customer base.
For the latest updates, consult with our experts.